Business
Sterling Metals Announces Closing of Private Placement of Units and Flow-Through Units
Not for Distribution to United States News Wire Services or for Dissemination in the United ...
About this update from Sterling Metals Corp.
[{"type":"text","content":"Sterling Metals Announces Closing of Private Placement of Units and Flow-Through UnitsNot for Distribution to United States News Wire Services or for Dissemination in the United StatesTORONTO, ON / ACCESSWIRE / April 1, 2021 / Sterling Metals Corp. (TSX.V:SAG) (the \"Company\") is pleased to announce that, further to its press releases of March 15, 2021 and March 17, 2021, the Company has closed a non-brokered private placement through the issuance of 2,981,925 units (each, a \"Unit\") at a price of $0.52 per Unit and 2,542,805 flow-through units (each, a \"FT Unit\") at a price of $0.57 per FT for aggregate gross proceeds of $3,000,000 (the \"Offering\").Each Unit is comprised of one common share (each, a \"Common Share\") in the capital of the Company and one Common Share purchase warrant (each, a \"Warrant\") of the Company. Each Warrant entitles the holder thereof to acquire one Common Share at a price of $0.78 per Common Share for a period of two (2) years from the closing date of the Offering (the \"Closing Date\"). Each FT Unit is comprised of one Common Share (each, a \"FT Share\"), issued on a flow-through basis, and one Warrant, issued on a non-flow-through basis, having the same terms as Warrants partially comprising the Units. The FT Shares will qualify as \"flow-through shares\" within the meaning of subsection 66(15) of the Income Tax Act (Canada).Mathew Wilson, CEO, states: \"We are fortunate to have excellent current and new shareholders who share our level of excitement for this potential high-grade district scale silver and base metal asset. With now over $6,000,000 in the bank and the potential for an additional nearly $10,000,000 in cash from future warrant exercises, the company is well positioned to drill out our numerous priority targets. The company has signed drill contractors and project geologists and is set to begin drilling as the weather warms. We are thankful for the support and look forward to continuing down the path of discovering Canada's next high grade silver district.\"The net proceeds of the Offering from the sale of the Units will be used by the Company for general working capital purposes. The gross proceeds from the sale of the FT Units will be used by the Company to incur eligible \"Canadian exploration expenses\" that will qualify as \"flow-through expenditures\" as such terms are defi...